Aftermath of the enforcement of the revised special money law…David, a virtual asset exchange, also terminates service

[Digital Today Reporter Jung Yoo-rim] Amidst concerns about the’reduction of business’ of small and medium-sized virtual asset (cryptocurrency) exchanges that could not open a deposit/withdrawal account (real name account) that can confirm the real name due to the enforcement of the revised special law, blockchain and fintech specialists David, run by Chain Partners, announced that it will be shutting down soon.

In a recent announcement, David said, “It is no longer difficult to provide normal transaction services due to changes in the regulatory environment following the enforcement of the revised special money law.”

David was founded in October 2018 as a subsidiary of Chain Partners and has provided exchange services. David plans to end the KRW deposit service from 6 pm on the 23rd and end all market transactions from 6 pm on the 28th. Withdrawal of KRW will end at 3 pm on the 30th, and the end of deposit and withdrawal of virtual assets is scheduled for 12 pm on May 31st. Accordingly, all services will end on June 1st.

It added that the KRW and virtual assets that the user did not withdraw will be provided with manual withdrawal after identification through the customer support e-mail for one year after the service ends. In case of manual withdrawal, a certain withdrawal fee is charged.

In accordance with the enforcement of the revised Special Act, business operators, such as exchanges that handle virtual assets, must report to the Financial Information Analysis Agency (FIU) after meeting the requirements provided by the law, such as information protection certification system (ISMS) and real-name account acquisition. You can receive and continue your business.

Existing companies have decided to give a grace period for six months until September, but as there is not much time, it is also expected that most of the business operators will go through the process of closing business. Prior to David, OKCoin Korea, a virtual asset exchange, also terminated services such as deposit and withdrawal of KRW and virtual assets earlier this month.